Cruise Cancellation Policies: What to Know

You've booked and planned your dream cruise, patiently waiting for that much-anticipated embarkation day. Then, with your wide-brimmed hat all packed and visions of frothy cocktails and far-flung ports dancing in your head, the unthinkable happens: Your cruise line cancels your sailing. While it's a rare occurrence, it's a scenario that can and does play out.

Sometimes, the culprit is the weather. While cruise lines can usually preemptively reroute ships in the face of approaching hurricanes or other extreme weather events, alternate arrangements are not always achievable. In October, for instance, Hurricane Matthew's wrath in the Caribbean and Florida saw several lines cancel scheduled sailings out of Florida ports. Other times, unforeseen mechanical or technical issues can deem a ship unsafe to sail, as was the case for a couple of Carnival Liberty sailings from Galveston to Mexico this fall, both of which were canceled due to a malfunction with the ship's propulsion system. Or, under rarer circumstances, a financially unstable cruise line might go belly up, which was just what hundreds of poor cruise revelers encountered this month when setting out for their scheduled voyages aboard two popular British cruise lines, Swan Hellenic and Voyages of Discovery. The lines' parent company, All Leisure Holidays, abruptly announced its bankruptcy, effectively shutting down all future voyages and affecting more than 13,000 already-booked cruisers.

So, if you were ever to find yourself in the same sad boat as these other unfortunate vacationers so recently did, just what recourse would you have?

Ask for a Refund

For the most part, cruisers can expect the option of a full refund or a replacement booking on an alternate sailing, whenever the cruise line itself is forced to cancel a scheduled cruise. Depending on the circumstances, some lines may take it a step further still and reimburse the cost of any travel arrangements made (like non-refundable flights or hotel bookings), as well as offer additional vouchers for discounted or upgraded future sailings. While the particulars of individual cruise line contracts' fine print on the matter vary, most lines we contacted stated that such policies are typically determined on a case-by-case basis. Nearly all major lines adhere to the Cruise Line International Association's Passenger Bill of Rights, which explicitly outlines that guests are entitled to a refund for cruises cancellations due to mechanical failures. But, notably, weather-related instances are considered a force majeure (“act of God”) and are not outright covered. In that case, Paul Motter, editor of online cruise guide CruiseMates, explained, "Any compensation is at the discretion of the cruise line. They are not legally obligated to give the guest anything," though he noted that most of the major cruise brands will usually offer a replacement cruise or refund all the same. "They do this because they care about their reputation, but not because they are legally obligated to do it," he said. Colleen McDaniel, Senior Executive Editor at Cruise Critic, advised that in the event of a cancellation under any circumstances, being proactive about the contacting the cruise line is a smart bet. "You don’t need to wait for them to contact you, so if you learn about a cancellation, or suspect a cruise will be canceled, get in touch with your cruise line and ask about your options," she said, adding, "Also, be sure to contact your travel agent if you used one." Indeed, a trusted cruise specialist, with clout and industry connections, can be your best advocate for negotiating with the cruise line.

Buy travel insurance

Travel insurance is always a smart idea, which can cover your financial investment in the case of a cruise line-instigated cancellation—or the far-more-likely scenario of an unplanned cancellation on your end, while additionally tacking on extra coverages like international medical insurance, trip interruption/delay benefits, and medical evacuation options. Not only will insurance recoup your cruise fare in the event of cancellation, but also flights, hotels, and other prepaid travel expenditures that the cruise line itself might not reimburse. Just note that you should book a policy soon after booking your sailing. Jeff Rutledge, CEO of AIG Travel, advised that the earlier you book, the better. "Once a cruise line or tour operator goes bankrupt, or another covered event happens, it will be too late to purchase travel insurance and still receive coverage for that event," he cautioned. Motter additionally advised to get travel insurance from a third party, and not directly from the cruise line itself: "Cruise line insurance does not cover financial default."

You can shop and compare travel insurance plans and their particulars on a comparison site like TravelInsurance.com, whose co-founder Stan Sandberg confirmed that most cruise line-prompted cancellation circumstances are indeed covered. "Most comprehensive travel insurance policies will provide trip cancellation coverage for weather or mechanical related issues," he stated, adding that "At the premium end of the market, plans may also offer coverage for a cancellation due to the financial default of a cruise line." Overall, though, you can anticipate that the cruise line itself will generally initiate refunds all on its own. Daniel Durazo, Communications Director for insurance provider Allianz Global Assistance, concurred, "The cruise lines do a good job of compensating their customers when they have to cancel a cruise, which happens very infrequently." However, he reiterated the value of travel insurance for all of the other incidentals beyond the cruise, citing "We do occasionally see claims for related travel expenses such as airfare and accommodations."

Have a backup plan

If you don't have travel insurance in place (or even if you do), your very best bet may well be an attempt to salvage your vacation by finding a suitable replacement cruise itinerary that roughly coincides with the original cruise dates. Motter said, "I would recommend looking for another cruise on a similar itinerary so your vacation time, air, hotels, etc., are not just wasted." The cruise line or a good travel agent are a good starting point to help you pinpoint a viable alternative. The good news: cancellations are uncommon, and cruise companies do their best to avoid them.